The price of gold may touch $5,000 an ounce in the next 4 to 5 years, California-based Capital Gold Group Inc. says.
With continuing political unrest in Libya and other areas in the Middle East and North Africa, Capital Gold says the rise of gold is far from over.
The geopolitical unrest we are seeing overseas is influencing not only gold but oil as well, said Capital Gold chief executive Jonathan Rose. Typically, gold trades at about 15 times higher than oil, so with oil above $100 a barrel, I would not be surprised if gold reaches above $1,600 an ounce in the coming months and $5,000 an ounce in the next 4 to 5 years.
The price of gold hit a new record high of $1,441 per ounce on March 2.
More individuals are turning to gold and silver to protect themselves from increasing inflation and the continued devaluation of the dollar. Tensions in the Middle East and North Africa are high, and there is a great amount of uncertainty as to what will happen next, says Rose.
Gold has been in an uptrend for over 10 years, so while tensions in the Middle East and North Africa have influenced gold's recent spike, it is not the complete picture as to why gold will continue to rise.
Debt is a major threat to not only the United States, but to the whole world, says Rose. Governments in countries such as India and China are all seeking gold as an inflation hedge.
Gold is the insurance needed to protect the assets that inflation will ravage, says Rose.
Capital Gold is a BBB-accredited, premier provider of investment grade gold and silver, gold and silver bullion.